GB Auto Corporate Growth and Expansion Strategy
AUTO
CV
Egypt
The Commercial Vehicle Division has seen modest growth on 2009; while sales are driven
by a pick-up in demand, margins remain under pressure
Buses
Trucks
Trailers
Construction
Equipment
•
•
•
39.7% market share in
9M2010 (exc. microbuses)
Bus sales were challenged by
a sharp slowdown in pace at
which traffic authorities were
granting new minibus licenses
to private contractors—the
majority of GB Auto's clients
Margins are under pressure
due to the expected price
sensitivity of a recovering
market and reduction of high-
COGS inventory
Margins will improve with
release of high-COGS
inventory and higher utilization
rates in GB Polo Suez facility
• Investment in quality-upgrade
of manufactured buses over
the past year creating high
export potential
•
•
•
15.9% market share in 9M10
Price-sensitive public sector
contracts currently dominating
heavy truck market
The heavy truck market is
20% down year-on-year,
further hampering sales
• Light-medium trucks are the
primary growth drivers for the
truck division
• Margins continue to be
challenged by the ongoing
devaluation of the Egyptian
pound
•
Management is exploring the
opportunity to enter into the
sizeable pick-up truck segment
•
Quality issues on trailers
continue to be addressed;
this is expected to continue
throughout 2010
• Unit sales down in 3Q10 as
management continues to
move old stock after
addressing quality issues
•
New demand from GB-Allab
Remorque having positive
impact on sales
•
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Sales results have been
modest year-to-date
A key supplier has agreed to
measures that should
improve our competitiveness
Possible additional
government stimulous
spending, and a speed-up in
spending by developers
would enhance prospects for
this segment
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